Goals 1. Limit your personal financing to a level and maturity that you can pay back on time. 2. For loans you anticipate needing in the future, evaluate the advantages and disadvantages of lenders. 3. Compare the cost of buying and leasing a car. Analysis 1. Review your personal cash flow statement. How much can you afford to pay each month for personal loans? Click here to view the personal cash flow statement 2. Identify several prospective lenders for personal loans you may need in the future. What are the advantages and disadvantages of each source with respect to the interest rates offered, method of calculating interest, other criteria of importance to you. Loan Evaluation ADVANTAGES OF SOURCES FOR LOAN SOURCE DISADVANTAGES OF SOURCE DESCRIPTION OF LOAN DESCRIPTION OF LOAN ADVANTAGES OF SOURCES FOR LOAN SOURCE DISADVANTAGES OF SOURCE 3. Compare the cost of purchasing a car versus leasing a car over a four-year period. Cost of Purchasing vs. Leasing a Car Cost of Purchasing the Car Down payment Interest rate Number of months Annual forgone interest on down payment Monthly payment on car loan Total monthly payments Total cost of purchasing Expected amount to be received when car is sold Total cost of purchasing Cost of Leasing the Car Security deposit Forgone interest Monthly lease payments Total monthly payments Total cost of leasing Cost of Purchasing vs. Leasing Income Tax Strategies Banking Services Managing Credit Goals 1. Limit your personal financing to a level and maturity that you can pay back on time. 2. For loans you anticipate needing in the future, evaluate the advantages and disadvantages of lenders. 3. Compare the cost of buying and leasing a car. Analysis 1. Review your personal cash flow statement. How much can you afford to pay each month for personal loans? Click here to view the personal cash flow statement 2. Identify several prospective lenders for personal loans you may need in the future. What are the advantages and disadvantages of each source with respect to the interest rates offered, method of calculating interest, other criteria of importance to you. Loan Evaluation ADVANTAGES OF SOURCES FOR LOAN SOURCE DISADVANTAGES OF SOURCE DESCRIPTION OF LOAN DESCRIPTION OF LOAN ADVANTAGES OF SOURCES FOR LOAN SOURCE DISADVANTAGES OF SOURCE 3. Compare the cost of purchasing a car versus leasing a car over a four-year period. Cost of Purchasing vs. Leasing a Car Cost of Purchasing the Car Down payment Interest rate Number of months Annual forgone interest on down payment Monthly payment on car loan Total monthly payments Total cost of purchasing Expected amount to be received when car is sold Total cost of purchasing Cost of Leasing the Car Security deposit Forgone interest Monthly lease payments Total monthly payments Total cost of leasing Cost of Purchasing vs. Leasing Income Tax Strategies Banking Services Managing Credit